The Impact Of People's Livelihood Expenditure On The Income Gap Between Urban And Rural Areas

With the continuous and rapid development of China's economy,people's income and living standards have been significantly improved compared with those before the reform and opening up,but it can not be ignored that with the improvement of the residents' income level,the income gap between urban and rural residents in China has been continuously widened for many years.The continuous expansion of the income gap between urban and rural residents not only runs counter to the goal of building a moderately prosperous society in an all-round way and achieving common prosperity,but also is not conducive to the sustained and healthy development of the economy and has a negative impact on the harmony and stability of the society.Under the background of market economy,when the market mechanism cannot play its due role in regulating the income gap between urban and rural areas,the government needs to adjust the income gap between urban and rural areas effectively through its own political and economic means,so as to play its role in regulating the income distribution.Among the means that can be used by the government to adjust income distribution,the financial expenditure for people's livelihood can directly affect the income level of urban and rural residents,and adjust the income gap between urban and rural residents.Therefore,it is of great theoretical and practical significance to study the impact of financial expenditure on the income gap between urban and rural areas,adjust the structure of expenditure on people's livelihood,effectively play the due function of financial expenditure on people's livelihood,and narrow the income gap between urban and rural residents.First of all,this paper collates the domestic and foreign literature related to people's livelihood expenditure and urban-rural income gap,defines the meaning of the government's livelihood expenditure studied in this paper,selects the most representative three expenditure items of people's livelihood expenditure,namely,education expenditure,medical and health expenditure and social security expenditure,combs the existing research conclusions of people's livelihood expenditure on urban-rural income gap,and studies the urban-rural income gap in China The current situation of income gap is described to provide the basis for the follow-up analysis and innovation of this paper.Secondly,from the perspective of education expenditure,medical and health expenditure and social security expenditure,this paper explores the impact mechanism of them on the income gap between urban and rural areas,and describes the current situation of various kinds of people's livelihood expenditure in China,which provides theoretical basis for the empirical analysis in the following paper.Next,we introduce the relevant control variables,build the measurement model,use the fixed effect,system generalized moment method to analyze the provincial panel data of 2005-2017 in China,and explore the impact of education expenditure,health care expenditure and social security expenditure on the urban-rural income gap.The empirical results show that the current education expenditure and medical and health expenditure significantly expand the income gap between urban and rural residents,while the social security expenditure plays a role in narrowing the income gap between urban and rural residents at the significance level of 10%,but the results are not significant in the follow-up regional regression,which shows that all kinds of people's livelihood expenditure at the current stage in China is narrowing the city The income gap between rural residents did not play an ideal effect.On the contrary,due to the existence of various kinds of people's livelihood expenditure urban bias,the income gap between urban and rural residents has increased,which is contrary to the original intention of the government's people's livelihood expenditure.Among the three control variables selected in this paper,the level of economic development,the level of opening to the outside world and the level of urbanization have significantly reduced the income gap between urban and rural residents.Finally,according to the results of the above empirical analysis,from the perspective of education expenditure,medical and health expenditure and social security expenditure,this paper gives policy recommendations to narrow the income gap between urban and rural areas and optimize the relevant areas of people's livelihood expenditure.